“Craziness of the World” does not Justify Buyer’s Termination of Commercial Real Estate Contract
One week before closing, a buyer of commercial real estate attempted to terminate the contract
One week before closing, a buyer of commercial real estate attempted to terminate the contract when the seller would not agree to renegotiate the purchase price or extend the closing date. The buyer claimed it needed to modify the contract because of the “craziness of the world.” Having been under contract for several months, investing time and money into the transaction, the seller was unwilling to renegotiate the contract shortly before closing. The buyer was no longer happy with the deal it had made, and did not appear at closing.
The buyer subsequently claimed that its request to lower the purchase price or change the closing date was an “inspection objection” that terminated the contract, and sued the sellers for a refund of its earnest money. At trial, the Court found there is no“craziness of the world” defense to a breach of contract claim. The buyer’s request to renegotiate the contract was not an inspection objection or termination, and therefore the buyer had breached the contract when it did not appear at closing. The Court awarded the earnest money to the seller as damages as provided for in the contract. The sellers were also awarded their attorney’s fees and costs. Hilary Roland represented the seller in the action.